Category: Security

Jumio has announced the partnership with digital bank Monzo, to verify new users and support know-your-customer (KYC) requirements.

Monzo will use Jumio’s Netverify to help verify customers who are moving from its prepaid card service to a full current account. This will enable the bank to comply with KYC requirements while removing the manual verifications from Monzo employees.

Jumio’s solution will also be used to verify existing prepaid card consumers and new people signing up for Monzo’s current accounts.

Jumio is an identity verification and credentials company that helps businesses reduce fraud. The company utilises proprietary computer vision technology to reduce customer sign-up and checkout friction.

“In a statement announcing the biometric smart card, OT-Morpho emphasized its use for everyday EMV payments…”

OT-Morpho has officially announced its biometric payment card solution at this week’s Money20/20 Europe expo.

Money20/20 Europe: OT-Morpho Unveils Biometric Payment CardThe card features NFC technology for contactless payments, and is EMV compliant. Of course, the standout feature is its embedded fingerprint sensor, with the card using OT-Morpho-developed algorithms to confirm the cardholder’s identity, and biometric data stored securely on the card.

In a statement announcing the biometric smart card, OT-Morpho emphasized its use for everyday EMV payments, but also noted that could be used to “help governments distribute social benefits, knowing that they reach no one else than the eligible (proof of life) citizen.”

The company did not mention the source of the card’s fingerprint sensors, but it’s worth noting that Mastercard’s trials of biometric payment cards earlier this year used a fingerprint sensor provided by IDEX together with technology supplied by Safran Identity & Security, which has since merged with Oberthur Technologies to form OT-Morpho.

When it comes to PCI DSS compliance, most organizations consider it as a one-off task, something to complete – often only after the Acquiring Banks ask to do so – and forget about once the compliance has been validated. The problem is that compliance audits only prove best-practice during a snapshot in time, and most organizations fail to maintain best-practice after they have passed the audit. It has been found that most, if not all, organizations that were supposedly PCI DSS compliant were found to no longer be compliant at the moment they were compromised.

A new research published by Signicat has shown that European eID schemes provide 69% of ID information needed to digitally apply for financial services.

According to “The Rise of Digital Identities” report, financial institutions are missing a vital link in the digital chain: onboarding. 40% of consumers have abandoned a bank sign up process because of the time and effort needed. This combined with the upcoming eIDAS regulation means that financial institutions need to be able to onboard customers 100% digitally.

In Belgium, for example, the eID covers all the necessary attributes but the scheme is only relevant in a consumer-to-government context. In The Netherlands, the bank-operated scheme offers the right coverage but, on its own, will not satisfy Know Your Customer (KYC) requirements.

To fully verify a customer’s identity, financial institutions must supplement eID information from a variety of sources including national ID schemes, various digital assets and traditional ID documents such as passports. To succeed, institutions must plug the gaps and ensure they have access to the right information in the right geographies.

The paper was developed with research from Innopay, the payments, digital identity and e-business consultant. Innopay surveyed the onboarding landscape across Austria, Belgium, Germany, Luxembourg, The Netherlands, Switzerland and the UK to look at KYC/AML requirements and how available eID schemes map to these requirements.

The analysis, however, points out that most merchants will receive value for their investment. Consequently, Juniper Research believes that extra effort is needed in educating merchants on the benefits of FDP (fraud detection and prevention).

The research points out that CNP physical goods sales are especially vulnerable to fraud, where loses will reach USD 14.8 billion annually in 2022. In spite of these figures, retailers are unwilling to impose rigorous ID checks on pick-up, fearing that this practice would damage the consumer experience and affect conversion rates.

Finally, the research argues that machine learning will be a key tool in identifying genuine users and combating fraud in 2018. At the same time, the ecommerce market will rely on 3DS 2.0 and biometrics.